Taseko extends copper price protection
TSX- and LSE-listed Taseko Mines has extended its copper price protection with the acquisition of a copper collar for the first half of 2023 to secure a minimum price of $3.75/lb and a ceiling price of $4.72/lb for 30-million pounds of copper.
The collar was purchased in mid-June when the price of copper averaged $4.20/lb.
These new collars ensure a minimum copper price of $4/lb for 42-million pounds over the second half of the year.
At current copper prices, the outstanding contracts will provide about C$45-million of additional cash flow over the next year.
Taseko CEO and president Stuart McDonald comments that the company has been using a price protection strategy for the last ten years, which helps to protect its balance sheet from sudden downward moves in the copper price.
“With this price protection in place, and with the improvements in head grades and copper production from Gibraltar that we expect in the second half of this year, our balance sheet will remain strong as we prepare for construction of our Florence copper project,” he adds.
Florence is poised to become a large-scale commercial mining facility operating in Florence, Arizona that will produce more than one-billion pounds of high-quality copper cathode.
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